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Magic Leap, the Stealthy Google-Backed Augmented Reality Startup, Wants to Keep Raising Money

How do you have no product but a $3.7 billion valuation? Magic!

Magic Leap

In the past year, venture money just hasn’t been able to get enough of virtual and augmented reality. For a case in point, check this chart from research firm tech adviser Digi-Capital released last month. As you can see, the biggest spike comes from Magic Leap, the Florida startup that has generated obscene amounts of interest in its so-called “cinematic reality” device — all without releasing a product.

Digi-Capital

Expect another big uptick on that chart.

Magic Leap has plans to raise up to $827 million in equity funding, according to Delaware filings provided by data firm VC Experts. That would put the startup’s valuation at roughly $3.7 billion. As we reported earlier, Chinese titan Alibaba plans to put $200 million into the company, joining earlier investments from Qualcomm, Legendary Entertainment and Andreessen Horowitz, among others.

The biggest investor is still most likely Google, which led Magic Leap’s previous $542 million round. Google CEO Sundar Pichai sits on the startup’s board. And industry sources suspect Magic Leap is necessary to Google’s long game in the increasingly vital sector. The search giant has Cardboard, its thrifty virtual reality headset, but needs to accelerate its efforts to keep up with Facebook and hardware makers diving into the space.

A Magic Leap rep declined to comment. Forbes first reported the news this morning.

This article originally appeared on Recode.net.